Association between Urban Educational Policies and Migrant Children’s Social Integration in China: Mediated by Psychological Capital

China’s urban educational policies have been established to solve the problems of potential discrimination and inequitable access to education, disrupting migrant children who move from rural areas to urban cities and who tend to suffer from a range of mental health issues. However, little is known regarding how China’s urban educational policies affect migrant children’s psychological capital and social integration. This paper aims to explore the effect of urban education policies on improving migrant children’s psychological capital level in China. The second objective of this paper is to examine whether policies can encourage them to integrate into urban society in a positive way. This paper thoroughly analyzes the impact of China’s urban educational policies on three dimensions of social integration of migrant children (identification, acculturation, and psychological integration), and also verifies the mediating effects of psychological capital on the relationships between these variables. The subjects of this study are 1770 migrant children in grades 8–12, who are sourced from seven coastal cities in China. Multiple regression analysis and mediation effect tests are employed to analyze the data. This study reveals that migrant children’s identification with educational policies has a significant positive impact on their psychological capital. Psychological capital has partial mediating effects on the relationship between identification with educational policies and the three dimensions of social integration. In other words, identification with educational policies indirectly affects the process of social integration of migrant children through psychological capital. Based on this, for the purpose of promoting the positive impacts of educational policies of inflow cities on the social integration of migrant children, this study makes the following recommendations: (a) at the micro-level, the psychological capital of individual migrant children should be enhanced; (b) at the meso-level, the partnerships between migrant children and urban children should be taken seriously; and (c) at the macro-level, the urban educational policies related to migrant children should be improved. This paper not only makes policy recommendations for improving the educational policies of inflow cities, but also offers a Chinese perspective on the research related to the tricky issue facing all countries around the world, the social integration of migrant children.